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Madoff Investor Plans to Sue Ex-Wife Over $2.7 Million Divorce Accord

Bernie Madoff’s Ponzi scheme ruined many lives and may be the reason behind Madoff’s son’s suicide. It is unfortunate that personal lives of investors were and still are affected. Steven Simkin, a New York law firm partner, believed he settled his divorce, which included the purported value of his investment account with Bernard Madoff. When the details of Madoff’s scheme became known, Simkin realized he may have lost even more and requested his 2006 divorce agreement adjusted.

Steven Simkin wants to sue his ex-wife, Laura Blank, over $2.7 million divorce accord, citing the doctrines of “mutual mistake” and “unjust enrichment.” The state’s Appellate Division ruled that the law firm partner could indeed sue. A big part of the issue for the appeal was the theory of existence of the account because of Madoff’s scheme.

Simkin stated in his filings that he and his ex-wife believed they owned an account with Bernard L. Madoff Investment Securities LLC, which was the couple’s largest asset valued at $5.4 million. Simkin paid Blank $6.6 million and $2.7 was attributable to the investment account. Simkin wants restitution.

Bank’s divorce lawyer called the decision by the appellate court “completely erroneous” and vowed to take the case to the New York state Court of Appeals, the state’s highest court.

Simkin and Blank married in 1973 and have two children together. The couple decided to separate in 2001 and agreed to divide their property in 2006. Blank gave up her bid for spousal support. Simkin reportedly continued to invest with Madoff after the divorce finalized.

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